Applied Optoelectronics Stock Forecast

A very strong day for Applied Optoelectronics stock price on Monday
(Updated on May 06, 2024)

AAOI Signals & Forecast

A buy signal was issued from a pivot bottom point on Tuesday, April 30, 2024, and so far it has risen 21.32%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. The Applied Optoelectronics stock holds a buy signal from the short-term Moving Average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the stock giving a more negative forecast for the stock. On further gains, the stock will meet resistance from the long-term Moving Average at $12.30. On a fall, the stock will find some support from the short-term average at $10.60. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal.

Support, Risk & Stop-loss for Applied Optoelectronics stock

On the downside, the stock finds support just below today's level from accumulated volume at $11.13 and $10.85. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Applied Optoelectronics finds support just below today's level at $11.13. If this is broken, then the next support from accumulated volume will be at $10.85 and $9.85.

This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $1.11 between high and low, or 9.86%. For the last week, the stock has had daily average volatility of 7.65%.

Our recommended stop-loss: $11.47 (-4.00%) (This stock has high daily movements and this gives high risk. There is a buy signal from a pivot bottom found 4 days ago.)

Trading Expectations (AAOI) For The Upcoming Trading Day Of Tuesday 7th

For the upcoming trading day on Tuesday, 7th we expect Applied Optoelectronics to open at $11.86, and during the day (based on 14 day Average True Range), to move between $11.06 and $12.84, which gives a possible trading interval of +/-$0.89 (+/-7.44%) up or down from last closing price. If Applied Optoelectronics takes out the full calculated possible swing range there will be an estimated 14.89% move between the lowest and the highest trading price during the day.

Since the stock is closer to the support from accumulated volume at $11.13 (6.86%) than the resistance at $14.15 (18.41%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..

Is Applied Optoelectronics stock A Buy?

Several short-term signals are positive, despite the stock being in a falling trend, we conclude that the current level may hold a buying opportunity as there is a fair chance for stock to perform well in the short-term. We have upgraded our analysis conclusion for this stock since the last evaluation from a Sell to a Buy candidate.

Current score: 1.029 Buy Candidate Upgraded

Predicted Opening Price for Applied Optoelectronics of Tuesday, May 7, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.